North Carolina Down Payment Support Systems

Online Payments - The North Carolina Housing Finance Agency got two amazing plans for First Time Home Buyers. These systems will be the Mortgage Credit Certificate along with the deposit Assistance Program.

Should you qualify for one of those programs and you also purchase a house between December 1, 2009 and January 1, 2009, you might also be eligible for the $8,000 tax credit only enacted into law in the Federal Economic Stimulus Plan.

First, who's a First Time Home Buyer? There is a First Time Home Buyer someone who has not owned a home in the previous three years. It is the same qualifying definition for the $8,000 tax credit.

What's a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction. The MCC takes this a step further. An MCC “reduces your tax liability based on a share of the mortgage interest that you pay.

It is possible to claim 20% of the interest you pay on your own mortgage as a credit on your own federal income taxes should you qualify for the MCC. It is possible to save around $2,000 on your taxes.

Should you qualify for the MCC, for 2009, you'll have the ability to unite this. This may reduce a buyer's tax liability by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your own income and also the cost of the home you're purchasing. Household income is defined as the “gross income of the mortgagor and every other person expected to live in the residence who is 18 years of age or older.”

House price limitations that apply in Durham, Orange and Chatham Counties and the income are listed below.

MCC Income Limits 1 Individual $61,500 2 Men $61,500 3 Men $70,500 4 Individuals $70,500

MCC Sales Price Limits New House $220,000 Existing House $210,000

Home buyers that want help with their deposit and closing prices may be able to get down payment assistance - or, to put it differently, interest-free, deferred second mortgages up to $8,000. The purchaser just needs to pay $1,000 of their own funds and the load would pay around $8,000 of the remaining balance.

This program has more rigorous income limits than the MCC plan summarized above. Like the MCC application, it could be used together with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment assistance, however, can't be utilized in combination with the MCC. That is an either or scenario.

House price limitations that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Persons $45,650 3 Persons $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New House $210,000 Existing Home $210,000